Taking the PFP practice of most CPA firms to the next level should be easily accomplished for any firm with a good client base, a good leader who is a good communicator and a business plan incorporating some of the best practices utilized by many of the nation's top financial advisors. But you would be amazed at how many CPA firms cannot take the next step.

To the surprise of many financial services executives, however, the CPA community at large has been slow to adopt wealth management. And for those who did, my experience and travels tell me that the average production or revenue for CPA financial planners is far below the average for full-time advisors who are not also running a CPA practice. That said, there is substantial room for improvement for both the fledgling and the successful CPA PFP practices.

To start the process of taking it to the next level, first define your vision of the next level. As most good CPAs would counsel business clients to be as specific as possible in business plans, I find it amusing that most CPAs don't even have a business plan for the PFP division.

Many speak in generic and often unreasonable visions regarding exactly how the PFP division shall become as or more successful than any other department or service at the firm. A clearly articulated business plan can be a big help. The plan should cover all of the key components.

? Who are your clients?

? What specific services will you provide i.e., investment advisory, financial planning, insurance advice, estate planning, business succession and exit planning?

? Who will deliver these services?

? What is the marketing and communication plan?

NO EASY MONEY

While I believe that adding PFP to an accounting firm is a superior model than the traditional services-only firm, it is no field of dreams. Many CPAs learned the tough way that it takes a lot more than simply getting licensed and thinking that clients would beat a path to your door and replace their incumbents to utilize your new division.

When thinking through your ideal clients for the PFP practice, it is necessary to have a good handle on exactly who your accounting and tax clients are. I mean knowing them from the demographic criteria that you determine as desirable in PFP clients. These criteria are both quantitative and qualitative.

The quantitative criteria can be issues like income, net worth, investable assets, business value or any other criteria that you believe is important to your firm.

The qualitative factors deserve equal or greater attention. Qualitative criteria include issues like the client's attitude toward your services. Is your client one who questions every bill and takes their time to pay? Does your client provide referrals and talk you up as a valuable member of their team? Do you enjoy the time that you spend with this client or is sitting with this particular client the hardest part of your day? What does your staff think of this client?

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